WAR IN THE GULF: ISRAEL

WAR IN THE GULF: ISRAEL; U.S.-Israeli Strains Appearing Over Delayed Housing Aid

By JOEL BRINKLEY, Special to The New York Times

Published: February 8, 1991

JERUSALEM, Feb. 7—
Israeli officials reacted with irritated astonishment today to remarks made by Secretary of State James A. Baker 3d on Wednesday about why Washington had not yet provided $400 million in loan guarantees for Soviet Jewish housing.

It was the first obvious crack in the newly improved relationship between Washington and Jerusalem since the Persian Gulf war began.

The debate over the loan guarantees began more than a year ago because of concerns that Israel might use the money to settle Soviet Jews in the West Bank and Gaza Strip -- something the Government promised not to do.

This week, Israeli experts and foreign diplomats said 1,500 to 3,000 Soviet Jews had moved to the occupied territories, even though there is no evidence that the Israeli Government is deliberately directing them there. No Precise Figures

That means that as many as 17 percent of the total number of Jewish settlers in the last year were Soviet Jews. No one keeps precise totals.

Mr. Baker, testifying Wednesday to the House Foreign Affairs Committee, made no mention of this question when he spoke about the loan guarantees. Asked what was holding up the guarantees, Mr. Baker said, "First we need to get the information that was promised after an extended negotiation." Last fall, the United States agreed to guarantee the loan if Israel provided projections and details about Jewish settlement in the occupied territories.

But here in Jerusalem, Avi Pazner, the Prime Minister's press adviser, reflected the irritated tone of several Government officials when he said: "We have already provided all the information and don't understand why this is moving at such a slow pace, particularly when you compare this to the immense needs of Israel right now."

[ In Washington, Administration officials said the Israelis had not provided all of the information that Washington was seeking. The officials said that last October Israel's Foreign Minister, David Levy, promised to give Mr. Baker certain assurances and detailed information. All of the assurances were given, but not all of the supporting information that would assure the Bush Administration that the $400 million would not be spent on West Bank settlements, they said.

[ In particular, the Administration said it was still waiting for information it requested from Israel on major road building programs and on any new settlement building, or expansion of existing settlements, since Oct. 2, 1990. ] Ministry Silent on Figures

The Finance Ministry refused to say today what information it had provided from the American request for information showing how much money would be spent on new settlement housing, where the housing would be built and how many people would move into the new units.

Israel first asked for the $400 million guarantee in the fall of 1989, when the size of the wave of Sovet Jewish immigration first became apparent. The money was held up because of the concern about Jewish settlement in the Israeli-occupied West Bank and Gaza Strip.

Then, as now, Israeli officials said only about one-half of one percent -- maybe as many as 1 percent -- of the Soviet immigrants were choosing to move the occupied territories. Most of the immigrants preferred to live near Israel's major cities.

But the housing shortage in Israel has prompted many Israelis, and apparently some immigrants as well, to move to the occupied territories. Foreign diplomats who monitor the situation closely say they believe the number is now probably 1.5 percent, perhaps even 2 percent.

Since the number of Soviet immigrants arriving here is huge -- 200,000 since January 1990 -- even the tiny percentages being cited produce large numbers of settlers.